First Chinese mobile device brand to achieve production landmark; ZTE to focus on boutique products and branding to sustain growth

18 April 2013, Shenzhen, China –ZTE today celebrated the 15th anniversary of its terminals division with the production of the company’s 500 millionth handset, becoming the first Chinese mobile device brand to achieve the landmark.

In an anniversary event in Beijing, ZTE Corporation Chairman Mr. Hou Weigui and Executive Vice President Mr. He Shiyou outlined the terminals division’s strategies to drive further growth and generate increased brand value to more than 500 partners and guests from industries spanning telecommunications, semiconductor, retail, consulting, and media.

Leveraging boutique products to sustain growth and build brand equity

ZTE plans to promote the Grand S quad-core smartphone and the Grand Memo phablet internationally in the near future, after the two flagship products scored impressive results since their introduction in China this year. The Grand S and Grand Memo represent the state-of-the-art in performance, specifications and industrial design in the global smart devices industry, epitomizing ZTE’s uncompromising commitment to innovation and superior quality.

“Boutique devices will be the focus for ZTE,” Mr. Hou said. “The company will ensure the mobile device business will have all the resources and support needed to develop and grow.”

Efforts to strengthen ZTE’s brand and engage consumers will be a key part of ZTE’s strategy. The Times Square in New York, the Fukuoka Yahoo! Japan Dome, the London Olympics stadium, and the works of Chinese film director Zhao Baogang are now some of touch-points where ZTE can form increased affinity with consumers around the world.

“It is crucial for ZTE to upgrade our brand and build brand equity,” Mr. He said. “ZTE’s technology stands shoulder-to-shoulder with the world’s leading companies, but the value of our brand is still under-appreciated.”

ZTE is working with retailers and platforms including Wal-Mart, Taobao, Phones4U, eBay, 360buy, Media Markt, Best Buy, and Suning in a new distribution strategy combining partnerships with operators, e-commerce, and retail channels.

Three-pronged strategy: Products, Branding and Marketing

The three-pronged strategy, focused on boutique products, branding and marketing, will help drive the terminals division’s shift to higher-end markets. ZTE will also leverage its globally-leading position in LTE technology, and deepen our partnerships with the world’s top operators and retailers, devoting increased resources on high-end markets such as the United States and Europe, and embracing a multi-channel, multi-point approach.

Since entering the handset industry in 1998, ZTE has become a mobile device partner for more than 230 telecommunications operators in over 160 countries, generating more than 60% of terminals revenue outside. ZTE has strategic partnerships with 47 out of the world’s top-50 operators, and is firmly established as the world’s No. 4 handset manufacturer.

Through partnerships with globally-leading technology companies including Qualcomm, Intel, Google, Microsoft, Baidu, Tencent, Mozilla and Dolby Laboratories, ZTE has derived valuable first-mover advantages in operating systems and mobile applications.

While it took ZTE 10 years to manufacture 100 million handsets after establishing the terminals division in 1998, only five years were required for volumes to grow from 100 million to 500 million.

"ZTE’s objective is to reach a global top-3 position within three years, and build a world top-5 brand,” Mr. He said.